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tschmidt
Premium,MVM
join:2000-11-12
Milford, NH
kudos:9
Reviews:
·G4 Communications
·Fairpoint Commun..
·Hollis Hosting
reply to jadziedzic

Re: We are not alone (Verizon sells assets to Frontier)

Just read that article on the front page. From the little I've heard I think it is safe to assume Frontier is going to go through much the same teething problems as FairPoint.

I'm really disappointed with Verizon. I give them a lot of credit for aggressively rolling out fiber. That was a bold move that positions them well for the future.

I don't understand rationale for selling off territory. Sure rural areas are difficult to upgrade and less profitable to operate. But at some point they will have saturated most profitable areas. At that point the only option for growth will be to go into less desirable areas. They have foreclosed that opportunity.

/tom


DrSmith

join:2009-02-16
united state

said by tschmidt:

I don't understand rationale for selling off territory. Sure rural areas are difficult to upgrade and less profitable to operate. But at some point they will have saturated most profitable areas. At that point the only option for growth will be to go into less desirable areas. They have foreclosed that opportunity.
I think the VZ moves make a lot of business sense. Now they don't have to run FIOS to rural areas, which is less (or un)profitable. They get rid of regions with shrinking revenue as more, and more rural and suburban customers go wireless only. They can offer the triple play in urban areas, competing with cable. And when Fairpoint or Frontier go bankrupt they can be a white knight, buying back the old territory for less than they sold it. That's easy growth that makes VZ stock go up. Win, win, win (except for the customers who lose